Comment by RickHull
17 hours ago
> or just an excuse to fleece regular buyers
In a market with healthy competition (no collusion), this generally can't happen. Every single vendor is incentivized to lower their prices slightly at all times, with a floor at cost plus margin.
>In a market with healthy competition (no collusion), this generally can't happen.
We're talking about the memory market here.
The "healthy competition (no collusion). Every single vendor is incentivized to lower their prices slightly at all times, with a floor at cost plus margin" is the fairy-tale version they teach at 101s.
why plus margin? the floor is cost
Floor is below cost if you think you can put one of your competitors out of business before you run out of money, and you'll make the money back after doing so. And this includes even after fines.